Matador Resources Company (MTDR)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,434,700	1,209,320	1,759,270	793,076	-521,499
Total assets	US$ in thousands	10,850,100	7,727,000	5,554,500	4,262,150	3,687,280
Operating ROA		13.22%	15.65%	31.67%	18.61%	-14.14%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,434,700K ÷ $10,850,100K
= 13.22%

Based on the data provided, the operating return on assets (operating ROA) for Matador Resources Company has shown notable fluctuations over the past five years.

In December 2020, the operating ROA was negative at -14.14%, indicating that the company was not efficiently utilizing its assets to generate operating profits.

However, the situation improved significantly in the following years. By December 2021, the operating ROA had rebounded to a positive 18.61%, demonstrating a strong operational performance in utilizing its assets to generate operating income.

The trend continued to strengthen in December 2022, with the operating ROA reaching 31.67%, signaling a robust performance in generating operating profits relative to its asset base.

In December 2023, there was a slight dip in the operating ROA to 15.65%, but the company still maintained a relatively healthy ratio compared to the previous years.

By December 2024, there was a further decrease in the operating ROA to 13.22%, indicating a slight decline in the company's ability to generate operating profits from its assets compared to the previous year.

Overall, Matador Resources Company's operating return on assets has shown variability, but the positive movement from negative to positive values from 2020 to 2022 reflects an improvement in the company's operational efficiency in utilizing its assets to generate operating income. However, the slight decrease in the operating ROA in 2024 suggests the need for the company to focus on optimizing its asset utilization to maintain and enhance its operational performance in the future.